GENERAL COMMENTS:
The livestock complex is trading higher into Tuesday's afternoon as traders remain encouraged by the strong demand for pork and by the strong market fundamentals in the cattle complex. Higher corn prices could be a threat Tuesday afternoon, but at this point they are manageable. December corn is steady and December soybean meal is up $7.50. The Dow Jones Industrial Average is up 240.90 points.
LIVE CATTLE:
The live cattle market has been a force Tuesday morning as traders may not being running the contracts multiple dollars higher, but they are treading into new territory as the spot august contract continues to trade at a new contract high. This is significant because traders are having to lean on their own understanding of the market's technical position and their own understanding of the market's fundamental state as no cash cattle trade has developed just yet. This continued support however shows that trades are keenly aware of how strong feedlots' position is in the market. August live cattle are up $0.22 at $177.42, October live cattle are up $0.52 at $180.50 and December live cattle are up $0.37 at $184.12. Asking prices are noted in the South at $180 to $182, but nothing has been established yet in the North. Trade isn't expected to develop until Wednesday at the earliest.
Boxed beef prices are lower: choice down $1.18 ($312.61) and select down $2.09 ($280.24) with a movement of 82 loads (33.81 loads of choice, 27.43 loads of select, 13.48 loads of trim and 7.50 loads of ground beef).
FEEDER CATTLE:
As the noon hour approaches, the feeder cattle complex is coming into more support as the nearby contracts are now trading higher, although traders are still leery and trying to discern if the corn complex's pressure is more bothersome or if the market's stellar demand outweighs such pressure. August feeders are up $0.10 at $246.42, September feeders are steady at $249.47 and October feeders are up $0.02 at $251.25. The live cattle complex's relentless spirit is helping coax traders into trading the feeder cattle market higher too. So long as corn doesn't break substantially higher, feeders could be able to keep these mild gains through Tuesday afternoon and into the day's close.
LEAN HOGS:
The lean hog complex is back at it as traders note the support from both the cash market and pork cutout values. Not to mention, after trading lower over the course of the last couple days, the market may be near resistance pressure, but isn't up against that threshold currently. August lean hogs are up $2.45 at $96.62, October lean hogs are up $1.77 at $82.90 and December lean hogs are up $0.92 at $76.85. Pork cutout values are still seeing tremendous support from the belly as it's price alone jumped $16.96, but the picnic is up $3.66 and the ham is up $3.46 which are gains worth noting as well.
The projected lean hog index for July 10 is up $0.51 at $98.66, and the actual index for July 7 is up $0.72 at $98.15. Hog prices are higher on the Daily Direct Morning Hog Report, up $3.90 with a weighted average price of $100.08, ranging from $98.00 to $102.00 on 4,225 head and a five-day rolling average of $99.60. Pork cutouts total 155.45 loads with 146.35 loads of pork cuts and 9.10 loads of trim. Pork cutout values: up $4.25, $112.20.
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